China slaps 15% tariffs on American goods amid trade tensions with Donald Trump: How will it impact US firms, consumers?

China on Tuesday announced that it will impose retaliatory tariffs on US goods. According to the official statement, additional tariffs of up to 15 per cent will be imposed on key US farm products, including chicken, pork, soy, and beef. The new tariffs will be effective from March 10.

The move came after Donald Trump ordered tariffs on imports of Chinese products be raised to 20 per cent across the board. Those tariffs took effect on Tuesday.

How is China's tariff likely to impact US companies?

The Commerce Ministry statement said imports of US-grown chicken, wheat, corn, and cotton would face an extra 15 per cent tariff. “The tariff on sorghum, soybeans, pork, beef, seafood, fruit, vegetables, and dairy products will be increased by 10 per cent.”

The tariff hike will directly impact US companies and consumers as it will lead to a surge in prices.

Speaking on the same lines, the ministry said in a statement, “The US’s unilateral tariff increase damages the multilateral trading system, increases the burden on US companies and consumers, and undermines the foundation of economic and trade cooperation between China and the US.” 

How China is reducing dependence on US imports over the years?

Since the US-China trade tensions escalated during Trump's first term, China has reduced its dependence on US farm imports. This trend is set to continue after Beijing announced new tariffs on Tuesday in response to fresh US duties.

• China imported $29.25 billion worth of US agricultural products in 2024, a 14 per cent decline from the previous year, extending a 20 per cent drop in 2023.
• About half of US soybeans, the country's largest agricultural export to China, were shipped to the Asian nation in 2024, totalling $12.8 billion in trade.

• China's imports of US corn plummeted to $561 million in 2024 from $2.6 billion in 2023 as domestic production increased, according to Chinese customs data.
• China bought $2.54 billion of meat and offal from the US in 2024, down from $4.11 billion in 2021.

Canada and Mexico also took strong stances on US tariff threats. Canadian Prime Minister Justin Trudeau pledged to impose retaliatory 25 per cent tariffs on Washington, saying in a statement: “Canada will not let this unjustified decision go unanswered.” Mexican President Claudia Sheinbaum said her country has contingency plans. 
(With agency inputs)